China Media Monitor (Issue 1)
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China Media Monitor (Issue 1)

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A fortnightly newsletter covering developments in the Chinese media industry. The newsletter is free and is also available for download at G2Mi.com. G2Mi.com is a leading website providing ...

A fortnightly newsletter covering developments in the Chinese media industry. The newsletter is free and is also available for download at G2Mi.com. G2Mi.com is a leading website providing information and analysis on the global media industry.

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China Media Monitor (Issue 1) China Media Monitor (Issue 1) Document Transcript

  • China Media Monitor | Newsletter on the Chinese media industry | Issue No. 1, Published 17th April 2009 | Published by Heernet Ventures Limited (heernet.com) | News Government keen for publishing sector to commercialise in the medium term Pearson acquires China unit of Carlyle Group's Wall Street Institute 56.com and Hunantv.com form strategic partnership Latest Chinese online gaming statistics China Television Media declared its annual financial results for the year 2008 Vision China’s CFO steps down China Mobile plans to invest CNY 70 billion in rural telecoms network Social network website, WangYou.com granted online video broadcasting license Sing Tao News Corporation publishes 2008 results China Broadband completes acquisition of AdNet China Alibaba entered into strategic partnership with US business information website, Jigsaw Data Share price performance Deal sheet (January – March 09) Newspaper market analysis Chinese media market coverage Heernet Ventures publishes this newsletter as part of its research coverage of the Chinese media industry. You can access more research on the Chinese media industry from our research website at G2Mi.com. If you are a media company or financial investor seeking growth opportunities in the Chinese media industry, we can assist you to ensure that you are successful in identifying and executing the best opportunities. With dedicated teams in both Europe and Asia, we are well placed to provide ‘on the ground’ assistance and support. We can help you understand the structure of the Chinese media industry and the key challenges that exist for foreign investors. We can also assist with deep analysis of key industry segments and assist you in both identifying and negotiating with suitable, local companies. For an initial discussion, contact Harjinder Singh-Heer on +44 (0) 208 180 7223 or by email on harjinder@heernet.com. © Heernet Ventures Limited 2009
  • China Media Monitor News Government keen for publishing sector to NetEase continued to be the leading two game companies, commercialise in the medium term with market shares of 16.5% and 11.5% respectively in Date 7 April, 2009 2008. China’s publishing regulator, General Administration of Press and Publications (GAPP) has announced that the 56.com and HunanTV.com form strategic government is willing to end the effective state monopoly partnership over key areas of publising and is keen to encourage some private sector investment. At present, the 300 or so private Date 14 April, 2009 publishers in China manage to operate through working The online video website, 56.com and the broadcasting within a tight regulatory regime - which usually requires group, Hunan Satellite Television have formed a partnership them to act as sub-contractors for state publishing to create a Hunan TV section on the 56.com website and companies or in some cases (e.g. Penguin Books) received also to work closely on online video monetisation. The permission to distribute books. In future, the government partnership is a renewal of a working agreement that was will consider allowing private sector companies to acquire a signed in 2008. minority stake in state-owned publishers. It is alos keen for consolidation among China’s state-owned publishers in order to see the emergence of a handful of well-capitalised, Vision China’s CFO will step down large publishing groups. Date 12 April, 2009 VisionChina Media, one of China's largest digital signage companies announced that Ms. Dina Liu will step down as Pearson acquires China unit of Carlyle's Wall Street Institute Chief Financial Officer of the Company. The company has not yet appointed a successor. Date 15 April, 2009 The UK-based educational publisher, Pearson Group PLC acquired the Chinese subsidiary of the language teaching China Television Media declared its annual comnpany, Wall Street English for US$145 million. Wall financial results for the year 2008 Street Institute's Chinese unit, Wall Street English, teaches Date 13 April, 2009 35,000 students at 39 training centers in 7 Chinese cities. The business is owned by the private equity investor, The Shanghai-based television production and advertising Carlyle Group (Carlyle first invested in Wall Street Institute company, China Television Media announced its annual in 2004). Pearson Group has a strong presence in a wide results for the year ended December 2008. The company range of educational sectors; in addition it UK based one of increased revenues by 24.6% to CNY992 million but net the leading International media company which engaged in profits declined by 10.4% to CNY 67.9 million. education, business and consumer publishing. China Mobile plans to increase investment in mobile networks in rural areas. Tencent becomes third largest online gaming company in China Date 09 April, 2009 Date 13 April, 2009 The leading Chinese mobile operator, China Mobile has Chinese online gaming website Tencent surpassed Giant announced plans to invest CNY 70 billion (over the next 3 Interactive to become China's third-largest online game years) to establish 2.5G telecom networks in company by revenue in 2008 (Source: iResearch). Tencent underdeveloped rural areas in China. had an 11% share of China's online gaming market in 2008. Giant Interactive which ranked third in 2007 dropped to fifth in 2008 with a market share of 7.8%. Shanda Interactive and © Heernet Ventures Limited. All Rights Reserved
  • China Media Monitor Social media website WangYou.com has received an online video broadcasting license China Broadband completes acquisition of AdNet Date 08 April, 2009 China WangYou Media, a leading youth-focused social media Date 07 April, 2009 website has received approval for an online video China Broadband, a provider of cable broadband services broadcasting license from the media regulator, State and publisher of programme guides in the Shandong Administration of Radio, Film and Television (SARFT). Province announced that it has completed its acquisition of AdNet Media Technologies Co., Ltd., a Beijing-based company delivering multimedia advertising content to Sing Tao News publishes full year results for 2008 internet cafés throughout China. Date 08 April, 2009 Sing Tao News Corporation announced its annual financial results for the year ended December 2008.The company Alibaba enteres into strategic partnership with generated total revenues of HK$2.4 billion, an annual Jigsaw increase of 7.9%. It generated net loss of HK$142.0 million Date 06 April, 2009 compare to net profit of HK$ 159.6 million in 2007. Sing The Chinese ecommerce website, Alibaba signed a Tao News Corporation is a Hong Kong-based media partnership with Jigsaw, a US-based website which carries company active in newspapers, magazines, media services information on over 12 million business contacts and 2 and recruitment. million companies. Alibaba.com has over 36 million users seeking business opportunities; in future, they will be able to search through business contacts and information on the jigsaw website. For access to information and analysis on the global media industry, visit G2Mi.com. The website offers free profiles of over 1,000 media companies worldwide and regularly updated industry research and data. G2Mi also carries information on a wide range of detailed industry reports on key growth segments of the global media industry. For information on G2Mi (including advertising opportunities): Please call +44 (0) 208 180 7223. To subscribe to this newsletter for free, please register at G2Mi.com © Heernet Ventures Limited. All Rights Reserved
  • China Media Monitor Share Price data Company name Reuters Bloomberg Currency Current % Change Code Code price 1 week 1 mth 6 mth 12 mth Diversified Media Sing Tao News Corporation Limited 1105.HK 1105:HK HK$ 0.34 6.25% 9.68% -34.62% -70.94% TOM Group 2383.HK 2383:HK HK$ 0.37 4.29% -1.35% 21.67% -25.51% Broadcasting Hunan TV & Broadcast Intermediary 000917.SZ 000917:CH CNY 16.85 -5.75% 15.14% 41.73% 6.63% Phoenix Satellite Television Holdings 2008.HK 2008:HKG HK$ 0.91 13.75% 24.66% 18.18% -14.95% Shaanxi Broadcast & TV Network 600831.SS 600831:SHH CNY 9.88 7.74% 20.05% 69.18% -10.33% Publishing Media Chinese International 0685.HK 685:HK HK$ 1.2 9.09% -2.44% -1.64% -38.78% Next Media Limited 0282.HK 282:HKG HK$ 1.05 15.38% 29.63% -40.00% -66.13% Internet Baidu BIDU.O BIDU:US US$ 196 7.36% 13.54% -13.72% -32.02% Alibaba 1688.HK 1688:HK HK$ 8.47 6.27% 9.57% 76.46% -37.72% i-Cable Communications 1097.HK 1097:HK HK$ 0.58 3.57% -1.69% -9.38% -50.00% Shanda Interactive Entertainment Ltd SNDA.O SNDA:US US$ 50.02 10.98% 37.76% 93.28% 89.18% Sina Corporation SINA.O SINA:US US$ 26.98 5.97% 28.35% -14.43% -25.30% Sohu.com Inc. SOHU.O SOHU:US US$ 49.31 7.10% 1.82% -0.24% -1.32% Tencent Holdings Limited 0700.HK 700:HK HK$ 64.3 4.05% 18.20% 20.98% 36.52% Online Gaming China Mass Media International Advertising Corporation CMM.P CMM:US US$ 2.48 32.98% 37.78% -45.49% -87.60% Giant Interactive group Inc GA.N GA:US US$ 7.53 3.51% 2.31% 24.26% -41.03% Kingsoft Corporation Limited 3888.HK 3888:HK HK$ 3.43 5.86% 26.10% 89.50% 20.25% NetDragon Websoft Inc. 0777.HK 777:HK HK$ 4.52 8.65% 32.94% 48.20% -52.92% Outdoor Advertising Clear Media 0100.HK 100:HK HK$ 1.98 0.10% 24.53% -19.18% -71.67% VisionChina Media VISN.O VISN:US US$ 5.85 -2.01% 12.50% -48.23% -53.27% © Heernet Ventures Limited. All Rights Reserved
  • China Media Monitor Deal Sheet A summary of key deals and joint ventures over the previous 3 month period. Date Sub Sector Investor Investee Terms Details Mar-09 Newspapers Next Media (China) Apple Daily HK$4.7million Apple Daily Publications publishes newspapers in Taiwan. Publications (0.5% stake) Next Media is a magazine publisher active in both Taiwan and (Taiwan) Hong Kong. Mar-09 Newspapers JP Morgan, Deutsche SCMP Group HK$382.5 The three banks acquired 4.8% stake each South China Bank and Bank of East (14.4% stake) Morning Post from Kerry Media. Asia (China) Mar-09 Internet Zhejiang NetSun Co Ltd China CNY 10million Zhejiang NetSun Co Ltd set up a joint venture with the (China) Telecom Corp wireless operator China Telecom to help boost Internet usage Ltd in Zhejiang Province. Mar-09 Mobile Internet Nokia Growth Partners KongZhong US$6.8 million KongZhong Corporation operates three mobile Internet sites: (Finland) Corporation (plus Kong.net; Ko.cn; and cn.NBA.com, It also designs and build warrants) third party mobile applications. KongZhong trades on Nasdaq (ADS) Feb-09 Newspapers MIH China (Hong Kong. ADPG Media 63% stake MIH China is a Hong Kong-based media company and owns Investment via a Group 67% of the joint ventures (the remainder is owned by ADPG Mauritius-based entity) Media). Anhui-based ADPG Media Group publishes 13 newspapers and magazines. The new joint venture will be responsible for ADPG’s printing, advertising and distribution activities. Feb-09 Mobile content Telstra Corporation Ltd China M, AS$300 The Australian-based telecoms operator, Telstra has acquired (Australia) Sharp Point million (67% majority stakes in two Chinese mobile and Internet companies. stakes) The companies are China M (a mobile content provider) and Sharp Point (a service provider to China Mobile's music platform). Jan-09 Broadband Shandong Radio & Music Review 100% Shandong Radio & Broadcasting Newspaper Group acquired Broadcasting Newspaper and Korean two regional magazines, Music Review and Korean Drama. Group (China Broadband Drama Inc) Jan-09 Advertising China Youth Media Xinhua Sports n.a. China Youth Media’s subsidiaries (Youth Media Hong Kong (China) & and Youth Media Beijing) entered into a joint venture Entertainment with Xinhua Sports & Entertainment. The joint ventures will market and develop an ad sales offering for the Campus Network. Jan-09 Animation Hangzhou Culture, Radio Zhejiang n.a. Hangzhou Culture, Radio and Television Group established a and Television Group Zhongnan joint venture with Zhejiang Zhongnan Construction Group to (China) Construction create and distribute animated content. Zhejiang Zhongnan Group Construction Group had previously been involved in interior decorations and furnishings. Jan-09 Mobile media Highland Capital VIVAME US$10 VIVAME Technology Co. Ltd (“VIVA”) received US$ 10 million Partners (France) plus Technology from venture capital firms Highland Capital Partners, Ventech, others Co. Ltd and Tian Suoning. VIVA is active in mobile media. © Heernet Ventures Limited. All Rights Reserved
  • China Media Monitor Data Newspaper sales data The latest official data on newspaper sales indicate a decline of 8% in sales over the year to February 2009. The historical trend has largely been positive, with newspapers printed achieving annual growth of between 4%-6% since the mid-1990s. Newspaper adspend has also grown strongly over the same period – achieving 18% CAGR from 1996 to 2003. Newspapers sold (Feb 08 – Feb 09) 1,450 1,393 1,392 1,400 1,381 1,364 1,372 1,367 Number of newspapers sold (millions) 1,338 1,343 1,342 1,350 1,326 1,310 1,300 1,256 1,250 1,217 1,200 1,150 1,100 1,050 1,000 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Newspapers printed (number of copies, 1990-2006) 14% 12% % change in newspapers printed 10% 8% 6% 4% 2% 0% -2% -4% -6% 1990 1992 1994 1996 1998 2000 2002 2004 2006 Source: National Bureau of Statistics, Beijing. Adspend estimates from Zenith Optimedia © Heernet Ventures Limited. All Rights Reserved
  • China Media Monitor Published by: Heernet ventures limited London UK Tel: +44 (0) 208 180 7223 Fax: +44 (0) 870 762 3014 Web: heernet.com, G2Mi.com © Heernet ventures limited 2009. All Rights Reserved. All corporate logos, images and brands are copyright of the respective companies. TERMS & CONDITIONS OF USE Every attempt has been made to ensure that the information in this publication is correct at the time of publication. Heernet ventures limited and its directors do not accept any liability for any errors or omissions within this publication. Unless specified, the views expressed in this publication are purely those of the author. The content of this publication does not in anyway constitute investment advice or investment recommendations. Heernet Ventures limited does not provide investment advice or investment advisory services and is not regulated by the Financial Services Authority (FSA) in the UK or any other financial services regulator in any other country. The content of this publication can not be reproduced without the written permission of the author. © Heernet Ventures Limited. All Rights Reserved